Study Guide Exam

Study Guide Exam - Study Guide Exam 1: International Trade...

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Import - A good or service that a country buys from another country. Export -A good or service that a country sells to another country. Trade Balance - difference between its total value of exports and its total value of imports. Trade Surplus - when a country exports more than it imports Trade deficit – when a country imports more than it exports Bilateral trade balance - difference between exports and imports between two countries Horizontal FDI - When a firm from an industrial country owns a company in another industrial country. o The majority of FDI occurs between industrial countries . o More adapt and skilled labor force o Better resources and technology Vertical FDI- The other form of FDI occurs when a firm from an industrialized country owns a firm or a plant in a developing country. Pattern of Trade- Country will export goods which it has a lower opportunity cost, and import goods in which it has a higher opportunity cost. o
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Study Guide Exam - Study Guide Exam 1: International Trade...

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